Where does the tax on gasoline go? - WBRC FOX6 News - Birmingham, AL

Where does the tax on gasoline go?

Alabama drivers continue to pay escalating gas prices.

"When I lived in Hoover I was driving about 45 minutes to work each day and my [bill] was $450 a month," Christopher Hughes said.

"It's hard on my boss. 25 dollars a day. You run around. Tough," Paul Strickland said.

Here's a breakdown of where the tax from gas is going:

In Alabama the state takes in a total of 16 cents per gallon. Of that money, most goes to the State Road and Bridge Fund. The Water Safety Fund, the seafood Fund and the Game and Fish Fund all get a share. Alabama counties get a cut. A total of 25 percent of net proceeds are sent to all 67 counties. Thirty percent of net proceeds are sent to all counties based on population.

Gas prices are expected to rise during the summer. While the tax rate will remain fixed per gallon, would it do any good if some of those taxes were possibly eliminated?

"As a general rule, the taxation law of gasoline in the United States is so much less than anywhere else in the world. I'm not sure how much that would do in lowering our gas prices," Andreas Rauterkus, UAB Assistant Finance Professor said.

The federal tax rate is set at 18.4 cents per gallon. Alaska has the lowest gas prices in the country, Connecticut has the highest. Alabama is among the lowest. Rauterkus says don't expect that to change, especially in an election year.

"It's not going to happen. It's an idea I don't see happening for that no matter what," Rauterkus said.

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